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It was founded in 1896 and named Alexandrovsk (Алекса́ндровск) in honor of TsarAlexander III.[11] Other sources, however, state that the original name was Alexandrovsk-na-Murmane (Алекса́ндровск-на-Му́рмане), it was called so after Alexandra Fyodorovna, wife of Emperor Nicholas II, and did not become known as "Alexandrovsk" until later.[12]

On October 16, 1925—when the Murmansk Governorate Commission meeting initiated work on compiling the lists of the urban and rural localities—Murmansk, Alexandrovsk, and Kola were categorized as urban; however, a recommendation was sent to the All-Russian Central Executive Committee (VTsIK) to demote the latter two to rural localities due to economic conditions, sparse population, low trade volume, lack of industrial enterprises, and "general regression".[15] On January 9, 1926, the assembly of the town residents created Alexandrovsky Selsoviet[14] and on March 15, 1926, when the VTsIK approved the recommendation to demote the towns, Alexandrovsk and Kola were re-categorized as rural localities.[15] At the same time the name was unofficially changed to Alexandrovskoye (Александровское).[citation needed]

On January 12, 1931, the Third Congress of the Soviets of Alexandrovsky District issued a resolution, renaming the district "Polyarny"; at the same time the village of Alexandrovskoye was renamed Polyarnoye (Поля́рное).[5] On March 5, 1931 the new name of the district was approved by the administrative commission of the Leningrad Oblast Executive Committee, and on March 11, 1931—by its Presidium.[5] While the Presidium of the VTsIK never officially gave a final approval for this renaming, de facto the name has changed.[5]

In 1934, the Murmansk Okrug Executive Committee unsuccessfully petitioned to grant town status to Polyarnoye and to rename it Krasnoflotsk.[16] Town status, however, was not granted to Polyarnoye until September 19, 1939, when it was at the same time renamed Polyarny.[6][7]

By the June 14, 1956 Decree of the Presidium of the Supreme Soviet of the Russian SFSR, Polyarny was demoted in status to that of a town under district jurisdiction and subordinated to Polyarny District.[17] By the Decree of the Presidium of the Supreme Soviet of the RSFSR of July 9, 1960, Polyarny District was abolished and the town of Polyarny was administratively subordinated to Severomorsk.[18] Finally, by the June 17, 1983 Presidium of the Supreme Soviet of the RSFSR Decree, the town was elevated in status to that of a town under oblast jurisdiction, and by the August 10, 1983 Decision of the Murmansk Oblast Executive Committee, several inhabited localities previously subordinated to Severomorsk were transferred to it.[19]

Russian Shipyard Number 10 (Shkval) is located in Polyarny, and in the West is more often referred to by the name of the town than by its official name. As the first nuclear-powered submarines were delivered to the Northern Fleet at the end of the 1950s, the yard was modified for docking and repair of these vessels. As Soviet (and now Russian) naval nuclear vessels are decommissioned, they are laid up at Polyarny to await defuelling and disposal.

Watercolor of HMS Ulysses at "Polyarno" (Polyarny), May 1944, by Arnold Barlow (crewmember). Part of the 1944 "Arctic Convoys" supplying Russia in World War II